The Financial Times today reported that at least $500m will be made available in student loans for MBA students studying overseas through an arrangement between GMAC and the financial community. The scheme will begin in the 2009/10 academic year.
This step will help alleviate the problem experienced by many students this year who were unable to get loans at competitive rates because of the credit crunch. The whole move will definitely help Non-US students applying to US business schools have been particularly hard hit because they are not eligible for federal loans.
The report said, "GMAC, the Graduate Management Admission Council, is working with Kevin Moehn of Moehn Management, which has been established to bring lending organisations together to facilitate student loans. Mr Moehn was executive vice president of Sallie Mae, which was responsible for developing student loan programmes in the US."
The report suggests that the pilot could provide at least $500 million in loans to students accepted at some 40 business schools in the US and Europe. Report also says."The lending scheme is not dependent on any particular bank or group of banks and students who borrow under the programme will not be required to secure co-signers. Business schools involved in the programme will not be liable for individual loan defaults."
“Our role has been to act as a ‘convening authority,’ bringing together business school administrators, lending organisations and other resources to help develop a solution to this challenge,” says David Wilson, president and chief executive of GMAC. He further added, “Schools greatly value the talent and diversity that international students add to the classroom and we all want to ensure that these students and future world leaders continue to have access to graduate business education.”
Source FT: International students get Loan Aid
Read in detail: GMAC Press Release
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